Why Did The Saudi Aramco US Dollar-Denominated Sukuk Attract Huge Investors? – Investing.com

Why Did The Saudi Aramco US Dollar-Denominated Sukuk Attract Huge Investors? – Investing.com

The news about Saudi Aramco's dollar-denominated $6 billion Islamic sukuk bond sale has raised some media discussions amid reports it attracted several huge international investors.

From the first day of the announcement, the sukuk offering was oversubscribed by about 10 times by high-rated investors. Though the figure is not yet confirmed, this clearly shows the international bond market trusts Saudi Aramco's business decisions, as it enjoys a high degree of profitability and operational flexibility.

As the most profitable energy company in the world, Saudi Aramco (SE:) is always at the top of the news cycle, even if some irrational questions are raised, such as whether the Aramco sukuk issuance will be used to raise liquidity to finance its commitment to pay dividends, when the dividends should be paid from the net profits.

To answer such an illogical question, Saudi Aramco, like many other corporations, has the full right to utilize its financial resources in the way that maximizes its profits, based on company board decisions, as it is expected to bear the responsibility of pumping large local investments that are part of Saudi Arabia's economic developments plans.

Some news agencies have reported that Saudi Aramco plans to raise liquidity through global debt markets to